VKF_FRAE_2017

CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED UNCONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUEDIN TURKISH, SEE NOTE I. OF SECTION THREE TÜRKİYE VAKIFLAR BANKASI TÜRK ANONİM ORTAKLIĞI EXPLANATIONS AND NOTES RELATED TO THE UNCONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2017 (Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.) PART III: FINANCIAL HIGHLIGHTS AND RISK MANAGEMENT 204 VakıfBank Annual Report 2017 b) Main sources of differences between regulatory exposure amounts and carrying values in financial statements Current Period Total Items subject to credit risk Items subject to securitization Items subject to counterparty credit risk Items subject to market risk 1 Asset carrying value amount under scope of regulatory consolidation 270,176,408 267,935,072 - 11,542,831 353,674 2 Liabilities carrying value amount under regulatory scope of consolidation 28,461,866 - - 10,161,298 (49,131) 3 Total net amount under regulatory scope of consolidation 241,714,542 267,935,072 - 1,381,533 304,543 4 Off-balance sheet amounts - - - 2,744,685 - 5 Differences in valuations - - - - - 6 Differences due to different netting rules, other than those already included in row 2 - - - - - 7 Differences due to consideration of provisions - - - - - 8 Differences due to prudential filters - - - - - 9 Differences due to risk reduction - - - 568,751 - 10 Exposure amounts considered for regulatory - 267,935,072 - 3,313,436 304,543 Prior Period Total Items subject to credit risk Items subject to securitization Items subject to counterparty credit risk Items subject to market risk 1 Asset carrying value amount under scope of regulatory consolidation 212,074,439 210,099,218 - 12,823,360 409,537 2 Liabilities carrying value amount under regulatory scope of consolidation 14,707,745 - - 14,039,037 (45,295) 3 Total net amount under regulatory scope of consolidation 197,366,694 210,099,218 - (1,215,677) 364,242 4 Off-balance sheet amounts 114,291,533 22,195,365 - 2,222,070 - 5 Differences in valuations - - - - - 6 Differences due to different netting rules, other than those already included in row 2 - - - - - 7 Differences due to consideration of provisions - - - - - 8 Differences due to prudential filters - (3,898,133) - - - 9 Differences due to risk reduction - - - 769,248 - 10 Exposure amounts considered for regulatory - 228,396,450 - 2,991,318 364,242 c) Explanations of differences bet ween accounting and regulatory exposure amounts There is no significant difference between the amounts assessed pursuant to TAS and the risk amounts used within the scope of capital adequacy reported on the financial statements.